A federal bankruptcy judge in Virginia today approved $75 million in emergency funding to allow US Airways to pay suppliers, staff and contractors while the company restructures its finances. Bowing under the pressures of mounting debt and declining passenger rolls, US Airways filed for Chapter 11 bankruptcy protection this weekend.
Industry watchers say that US Airways may be the first airline to bend since the September 11th attacks, but more airlines may soon follow suit. Investors nervous about the industry sent the stock market sliding, with United Airlines stocks down as much as 30% at one point today.
It’s been almost a year since the September 11th attacks sent the industry into tailspin. Today, every major US airline except Southwest is losing money, in spite of dramatic cutbacks, thousands of layoffs, and a $15 billion government bailout.
Does America have a viable airline industry? How much can government and the public do to save the struggling industry?
Guests:
Steve Lott , business editor for Aviation Daily, the daily publication and record for the airline industry
Elizabeth Warren,
Professor at Harvard Law School and specialist in commercial and
bankruptcy law
Rudy Maxa, expert-in-residence with The Savvy
Traveler and Washington-based journalist
